Marks & Spencer backs Stuart Rose in share row
Retailer condemns press ‘inaccuracy and innuendo’
Marks & Spencer has strongly backed chief executive Stuart Rose as the Financial Services Authority launches its formal inquiry in dealing in M&S shares in the run-up to Philip Green’s announcement of a potential bid for the business.
After a weekend of intense press speculation, M&S issued a statement saying “shareholders should be aware that there are material factual inaccuracies and innuendo in some of these stories”.
The company said that Rose did not know that Bhs and Arcadia owner Green intended to bid for M&S when Rose acquired a package of M&S shares on May 7.
M&S also said that when Rose met Green on May 12, Rose was informed of the possible bid, and “did not improperly inform anyone about what was disclosed at this meeting”.
The statement added that Rose was at no point part of Green’s bid team, was not offered the job of chairman of Green’s bid vehicle Revival Acqusitions, and “has never claimed that he was”.
The company said Rose informed M&S of his share ownership before his appointment as chief executive, and “the board has satisfied itself that Stuart has acted properly. The Board is totally supportive of Stuart Rose”.
M&S chairman Paul Myners said: “The facts are clear. When Stuart Rose acquired shares in M&S on May 7, he did not know either that Philip Green would make a bid for M&S or that he would be asked by the company to become its chief executive.
“Stuart will not allow himself to be distracted from the task in hand, of maximising value for shareholders.”
Rose later confirmed to the BBC that at the time he bought the shares on May 7 “I did not know that Philip Green was bidding”.
[img r]M&Scarrierbag.jpg[/img]Asked if the controversy has serious implications for M&S, he added: “It’s serious in one respect, in that we’re getting away from the main issue. If I had done something wrong, I would step down from the company. I have done nothing wrong.”
The FSA has not named any individual that it plans to interview, simply saying that, “in line with its policy of reviewing all suspicious price movements”, it has reviewed trading in M&S shares prior to the announcement by Revival on May 27, and has now asked its Enforcement Division to make a more detailed investigation.
